RMB rolls out national study

National advertisers who want to know more than just the age and sex of the people who are listening to radio will soon have access to plenty of qualitative data, thanks to a national study co-sponsored by the Radio Marketing Bureau...

National advertisers who want to know more than just the age and sex of the people who are listening to radio will soon have access to plenty of qualitative data, thanks to a national study co-sponsored by the Radio Marketing Bureau and BBM Bureau of Measurement.

The first RTS Canada study will be in market this fall, with results available spring 2001.

The national study will build on the RTS Major Market surveys BBM has been conducting for the past few years in Toronto, Vancouver and Victoria. Beginning this fall, BBM will roll out the survey to the Calgary, Edmonton, London, Ottawa, Montreal and Halifax markets. As well, more questions of relevance to national advertisers will be included.

The sample size is 30,000.

John Harding, president of RMB, says he expects RTS Canada will become a key planning tool for media buyers.

"Knowing whether an individual is an automotive purchaser, beer drinker or someone who buys toothpaste, and understanding the media habits and lifestyle features of that individual when it comes to planning radio buys or radio in conjunction with other media, means planning [will be] better."

David Bray, senior vice-president of RadioWorks, a division of Toronto-based agency Hennessey Bray & Reade Communications, says that radio research, as embodied in the RTS Major Market surveys, has come much farther than television research.

He says that, even with people meters, TV data is still very much based on demographics.

Unfortunately, Bray says, many buyers and sellers of radio in markets where qualitative data are available are still basing their purchase on demographic GRPs – something that’s not in the best interest of the client.

"They should be buying on the product usage data cross-referenced with the demographics. If you’re Blockbuster, don’t you want to know how many listeners of a radio station rent five-plus movies a month?

"To me, that’s far more telling than how old they are."

Kraft Heinz beats the street, but reports slight sales slide

The company's Q2 net sales, while down slightly, reveal continued demand for snacks and pre-packaged meals.
Kraft Heinz

Kraft Heinz is reporting earnings of 78 cents a share, beating Wall Street’s estimate of 72 cents a share, thanks to continued demand for snacks and pre-packaged meals. However, the company also reported a net sales decline of 0.5% compared with the same period last year, to $6.6 billion, according to its latest Q2 earnings report, released Tuesday.

The company experienced a favourable 2.3 percentage point impact from currency and a negative 0.7 percentage point impact from its February divestiture of Hormel Foods – including the Planters peanut brand – which closed in the second quarter of 2021.

Its cheese divestiture – which included the sale of its natural cheese division to Lactalis – is expected to close in the second half of 2021, says Kraft Heinz Global CEO Miguel Patricio in this morning’s conference call.

Adjusted EBITDA slumped 5.2% versus the year-ago period to $1.7 billion and increased 6.6% versus the comparable 2019 period. Higher transportation and inflation-related goods costs continue to affect the company’s bottom line.

Kraft Heinz’ organic net sales declined 3.6% in Canada over the last three months compared with a comparable period last year, this as total net sales rose 8.8% year over year. 

However, its overall organic net sales slipped 2.1% compared with 2020 figures. This includes the negative impact stemming from exiting its McCafé licensing agreement. However, this decline was partly offset, Kraft Heinz reports, by “partial recovery in foodservice channels and retail consumption trends.”

“Food service is recovering, and recovering fast,” Patricio stressed in today’s earnings call. He said “the bet to support QSR” early in the pandemic, with individual packets of ketchups and sauces, is paying off.

Channel trends are still normalizing, he warns, and it’s too early to see how at home or away from home, will net out. “We have big ambitions for away from home business,” he said. Consumers continue to evolve how they eat, with Patricio saying that Kraft Heinz is collaborating with a popular DTC brand for its Philadelphia cream cheese.

Accrued marketing costs, the company reports, rose to $968 million from $946 million in December 2020.

“We are investing more in our brands, and better as well, building a much more creative company,” Patricio reported.

Kraft Heinz is also strengthening and diversifying its media presence, he said, driving repeat rates for those discovering and rediscovering the brand. Patricio added that the company is continuing to drive its transformation program forward, modernizing its brands and better connecting with its consumers.